nym-product However, remember that a significant share of Bitcoin is already owned by government-affiliated entities (so-called "US strategic reserve", seized assets, ...) and big companies (funds, ETFs, ...).
I wasn't clear and caused a misunderstanding. The bitcoin network is not attacked by parties that buy and hold substantial amounts, as the inherent information (how many coins there are and what path they took) are still reliably and transparently true. An attack would be trying to change that truth by takinf over the whole mining and verification process. For this, you need too much energy to be possible or at least profitable.
Other proof of work networks are too weak and could be taken over by a big company or small government.
The Tor network could be taken over by running many nodes and so could Nym if I understand it correctly. A cheap attack for a surveillance state.
nym-product What would make a reputation system more decentralized if it was based on Bitcoin?
That's the point, a reputation system needs trust. Bitcoin is not a reputation system because it is independently verifiable by everyone. You could check on your own cheap node what hashrate was necessary to mine the last block (and every block before it until the beginning when it was weak). The verification is based in real physical work and thermodynamic laws.
I don't know how one would use this for a VPN network, but whenever someone claims to be "decentralized" by using "blockchain technology", it's clear for me that it's either the Bitcoin blockchain or no real decentralization.
nym-product This is addressed by a combination of a reputation/reward system,
Game theory applied: What would be my reward for running a node? If it is a newly created token or coin, it needs to be valuable and stay valuable over time. But if it's only value is to be sold for fiat money to cover my costs or win, it will quickly become worthless and unsustainable. Therefore fewer people would support the system and it would be more and more vulnerable over time.
Thanks by the way to be available and taking the time to answer. Few projects do that and it's good to learn more about Nym. We need more privacy focused tools, they just need to work well so I hope you take all our criticism and questions as constructive feedback and stay around.